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Dell Looking to Harness Potential of Inland Areas in China for Higher PC Sales

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Published on : Nov 28, 2013

China\'s second largest personal computer seller Dell, Inc. sees big profits in moving beyond the urban areas and venturing into smaller cities. This is prompting the personal computer major to take a serious look at inland areas given that the nation is aggressively pushing its urbanization drive that has proven to be a perfect window of opportunity for Dell, Inc.

Wang Lijun, who heads Dell\'s consumer electronics unit said that some of the company\'s brands are faring well in larger cities such as Beijing, Guangzhou and Shanghai. However, these brands are conspicuous by their absence in the hundreds of smaller cities that are home to 63% of the country\'s population. It is evident why the Texas-based global personal computer giant is taking a serious look at its sales and marketing strategies in tier IV to tier VI cities. The company\'s official describes the inland areas as being a “major battle field” for the company in 2014 as the company has not yet created a noticeable presence in China\'s smaller cities.

In early 2014, Dell had announced plans to double its retail store footprint in China in the next three years with the primary intention of fortifying its presence in smaller Chinese cities that are less developed, hence carry vast potential. 

These expansion plans are being seen as a threat to the Lenovo Group\'s current position—that of being the largest computer seller in China. After all, Michael Dell, the company\'s founder and CEO has made it clear on more than one occasion that China remains the “center” of Dell\'s business besides being the most crucial global market for the company.

Globally, sales of personal computers have shown a decline. But it has been quite the opposite in China where the third-quarter sales of PCs were in fact better than expected, according to studies by research firm IDC.

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